Beijing Bytes: US-China Tech War Updates

China's AI Chip Chop: Uncle Sam Strikes Back in Tech Tiff


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This is your Beijing Bytes: US-China Tech War Updates podcast.

Hey there, I'm Ting, and welcome to Beijing Bytes, your go-to source for the latest on the US-China tech war. Let's dive right in because the past two weeks have been anything but dull.

First off, China kicked off 2025 by slapping export controls on 28 US companies, including Lockheed Martin and Boeing Defense. This move is a clear signal that Beijing is ready to retaliate against what it sees as US provocations, especially with Donald Trump gearing up to resume the presidency and promising tougher stances on China[1].

But that's not all. The US Treasury Department has been busy too, imposing sanctions on a Chinese cybersecurity firm and a Shanghai-based cyber actor named Yin Kecheng. This comes after a major hack involving 3,000 stolen files from the Treasury and telecom breaches, attributed to the Salt Typhoon group, which is linked to China's Ministry of State Security[2][5].

Now, let's talk about the new tech restrictions. The Biden administration, in its final days, enacted export limits on AI chips to China, which could drive data center construction to US allies and force China to boost its own AI capabilities. This move is seen as a form of economic warfare, with experts like Oliver Blanchard from The Futurum Group noting that it's a dangerous tension between trading with China and treating it as a rival[4].

Nvidia, a major player in the AI chip market, has strongly criticized these export controls, saying they threaten to derail innovation and economic growth worldwide. The company argues that the rules would control technology that's already widely available and would only weaken America's global competitiveness[4].

Looking ahead, these developments suggest a deepening tech war between the US and China. The restrictions could lead to a surge in demand for data centers and AI talent in exempt countries, driving up the cost of AI in the US and its allies. Experts predict that China will pump up its own AI capabilities, potentially reducing US AI leadership[4].

In summary, the past two weeks have seen significant escalations in the US-China tech war, with both sides imposing new restrictions and sanctions. The strategic implications are profound, with the global AI market set to become a battleground for economic and technological dominance. Stay tuned for more updates from Beijing Bytes. That's all for now.

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Beijing Bytes: US-China Tech War UpdatesBy Quiet. Please